The British government has decided to offer discounts of up to £3,750, approximately €4,600, for buyers of electric cars priced at or below £37,000, or over €42,000. This measure aims to stimulate demand for electric vehicles, which has shown signs of stagnation, while also helping to meet the country’s net-zero greenhouse gas emission targets set for 2050.
The British administration has allocated an investment of £650 million, around €750 million, to this incentive program, which will be available to consumers starting this week. Transport Secretary Heidi Alexander emphasized that “this grant for electric vehicles will not only allow citizens to save the hard-earned money, but it will also help our automotive sector take advantage of one of the biggest opportunities of the 21st century.”
This initiative responds to the repeated calls from the automotive industry for incentives that facilitate the sale of these vehicles. Manufacturers must increase their sales figures annually to meet emission reduction targets, and those who fail to reach the necessary levels could face significantly high penalties. At the same time, consumers have cited the high upfront cost as a major barrier to purchasing these cars.
It’s important to remember that in 2022, the British government had scrapped its previous incentive plan for purchasing electric vehicles, opting instead to focus on expanding public charging infrastructure. With the announcement of this new measure, the government is aligning itself with other European countries that are already offering grants and tax exemptions to buyers of electric vehicles. The £650 million grant will be available until 2028-2029.
Referrer: MiMub in Spanish
